Nuveen, the $1.2 trillion AUM investment manager of TIAA, announced today the launch of the Nuveen Core Plus Impact Fund (NYSE: NPCT), raising $575 million in the fund’s initial public offering. According to Nuveen, the fund is the industry’s first impact investing-focused closed-end fund.
If the fund’s underwriters fully exercise their options to purchase additional shares, the amount raised will increase to approximately $661 million.
Dave Lamb, Head of Closed-End Funds at Nuveen, said:
“At Nuveen, we have a long history of not only pioneering responsible investing but also delivering income solutions. We are proud to bring these together, while building on our heritage of innovation in closed-end fund strategies, to launch the Nuveen Core Plus Impact Fund, the industry’s first responsible investing closed-end fund.”
According to Nuveen, a portion of the fund’s AUM will be dedicated to impact investing opportunities, including investments that provide exposure to issuers and/or individual projects with direct and measurable social and/or environmental benefits. The rest of the fund will be dedicated to ESG investments. The fund will invest in a diversified portfolio of fixed-income investments across four social and environmental themes, including Affordable Housing, Community and Economic Development, Renewable Energy and Climate Change, and Natural Resources, as well as in issuers that demonstrate ESG leadership.
Stephen M. Liberatore, CFA, Lead Portfolio Manager for Fixed Income ESG and Impact Investments at Nuveen, said:
“Recent demand for opportunities aligned with investors’ values has been met with a surge of green, social and sustainable bonds, and increased awareness of the environmental and social benefits that can accompany competitive financial returns. This has propelled the growth of the impact bond market. We’re proud to offer investors a unique opportunity to express their values and market views through a closed-end fund, which continues our strong tradition of providing a variety of dedicated responsible investing fixed-income options to investors.”